All of us have heard the stories about someone who got lucky and won the lottery or who came up with a brilliant idea and sold it to become rich. But, did you know that for every person who got rich quick there is a hundred or more people who got rich by following the same path?
It’s true. A majority of wealthy people in the world share the following 5 characteristics:
1. Long term viewpoint: People of wealth rarely look at tomorrow. They are looking a year, 5 years or 10 years into the future. They see the long term value in what they purchase, and just as importantly, in what they don’t purchase. Lesson learned: Make sure that you understand how the decisions you make today can affect you 10 years from now.
2. Staying organized: People of wealth are extremely organized with their finances. The understand the terms and conditions of anything that effects their money and they understand how to take advantage of loopholes that may exist for their profit. Lesson learned: Spend time to understand the ins and outs of everything the affects your money.
3. Willing to take a risk: To build long term wealth, you have to take a calculated risk every once in a while and hope it pays off. For example, a friend of mine recently bought 10,000 shares of a stock that had plummeted to $1 per share. He felt that the stock was due for a rebound and he felt he could risk the $10,000. Within a year the stock was back over $10 per share and he had profited over $90,000. Lesson learned: If you can afford to take an occasional risk due, but only take a risk you are comfortable with.
4. Know what you want to accomplish: The best way to achieve any goal is to know what you want to accomplish and then work your way backwards; understanding the steps and time lines you will need to get there. Once you have this plan in place, all you have to do is execute it. It’s hard to get to where you want to be if you don’t know where that is. Lesson learned: Know where you want to be and then put together a plan to get there.
5. Willingness to work hard and sacrifice: Those who have accumulated wealth also show a willingness to put off purchases today so that they can put money towards their long term wealth goals. Next time you are looking to buy that hot new sports car, ask yourself “Would I be better off buying a used car now so I could also buy some stock”? It might pay off that a few years down the line you have enough money to buy an even nicer car.
The best news about all of these traits is that every one of them can be learned and implemented by you so that you too can build long term wealth.